More Bad News: Providers to Spend Less Than Thought

A UBS analyst has revised the percentage by which he expects telco and cable capex spending in the United States to drop next year.

Nikos Theodosopoulos initially projected wireline telcos would spend 5 percent less in 2009. Now he’s changed that number to 10 percent as the economy gets worse. Wireless spending will fall by about 7 percent, Theodosopoulos added.

Cable operators are likely to spend 5-10 percent less than previously thought as well, according to UBS.

That is, of course, not good news for anyone. The trickle-down effect means that as providers spend less, equipment makers will lose money, as will contractors, software developers, and so on and so forth. Can we be done with this recession now, please?

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